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Carlton Power secures UK Government support for green hydrogen project

01 January 2024

Independent energy infrastructure development company Carlton Power has announced it has been successful in Round One of the UK Government’s Hydrogen Allocation Round (HAR1). The company’s project at Barrow-in-Furness has been awarded a financial contract from the UK Department of Energy Security & Net Zero (DESNZ). Subject to reaching a Financial Investment Decision in the early part of next year, the Barrow project should enter commercial operation within two years.

Image: Carlton Power
Image: Carlton Power

The Barrow Green Hydrogen project has been developed in partnership with Kimberly-Clark, the international manufacturer of consumer products including Andrex, Kleenex and Huggies. Carlton’s scheme will supply green hydrogen to the company’s neighbouring manufacturing plant and will reduce the company’s reliance on natural gas by up to 30%, the company said.

Eric Adams, Carlton Power’s Hydrogen Projects Director said: “We are delighted with today’s announcement from DESNZ.  Securing a contract for Barrow – 30MW of capacity and an investment of c£50m, and with planning consent – is a major achievement and places Carlton Power among the leading British companies that are helping to build the hydrogen economy in the UK.  Barrow is a pioneering project for Cumbria’s hydrogen ambitions.”

Keith Clarke, Founder and Chief Executive of Carlton Power said: “We are supporting local industry to decarbonise their operations, supporting Cumbria’s efforts to reach Net Zero and we are a catalyst for green investment and jobs.  Working with our financial partners, Schroders Greencoat, we can now work towards a Final Investment Decision for the Barrow scheme in the early part of next year and thereafter work to have it enter commercial operation within two years.”

Carlton Power is working with investment manager Schroders Greencoat to finance, build and operate Barrow Green Hydrogen via their joint venture – Green Hydrogen Energy Company Ltd (GHECO). The JV, announced in May 2023, aims to build a hydrogen project portfolio in the UK of 500 MW by 2030.

Kristian Høeg Madsen, Co-head of hydrogen at Schroders Greencoat, said: “As one of the Europe’s leading investors in renewable energy infrastructure, we are incredibly pleased that our partnership with Carlton as one of the UK’s leading developers has progressed today with this successful outcome from HAR1. Hydrogen can provide robust, reliable and carbon-free returns for investors, and we’re excited to continue to drive green hydrogen build-out in the UK in line with the Government’s hydrogen ambitions.”


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